Premier African Minerals Limited Circum Minerals Update (6139W)

TIDMPREM

RNS Number : 6139W

Premier African Minerals Limited

10 February 2017

Premier African Minerals Limited / Ticker: PREM / Index: AIM / Sector: Mining

For immediate release

10 February 2017

Premier African Minerals Limited

("Premier" or the "Company")

Circum Minerals Update

Premier African Minerals Limited (AIM: PREM), the London quoted mining, exploration and production company, is pleased to announce Circum Minerals Limited ("Circum"), in which Premier holds 2 million shares (equivalent to an interest of approximately 2%), has posted an updated presentation on its website. For further detail, please click on the following link to view the Circum presentation http://circumminerals.com/sites/default/files/Circum_Minerals_Presentation_Website_Feb.2017.pdf

The introduction to the Circum presentation provides the following highlights, which have been reproduced in full below without material amendment or adjustment:

   --     Mineral resource of 4.9 billion tonnes at 18.1% KCI with reserves of 107.8 of KCI equivalent 
   --     Seismic data suggests potential total resource of 12 to 14 billion tonnes 

-- Targeting annual production of 2 Mt of MOP and 0.75 of SOP for phase 1 using low cost, low risk solution mining and solar evaporation

-- Scalable production - resources sufficient to support at least two, possibly three expansions

   --     Mine gate cash costs projected to be among the lowest in the world 

-- One of the lowest capital intensity per annual tonne of any major potash project in the world

   --     Substantial transportation advantages to India, Southwest Asia and South China 
   --     Management team has experience building mines and track record to production 

George Roach, Premier's CEO, commented:

"The expected sign-off of Circum's mining license and possible liquidity event in the near future, the impending return to production at RHA, ongoing results from Zulu Lithium and the end of all convertible loan notes all support the recent improvements in Premier's market capitalisation. To put the Danakil project in context, the much smaller Yara project to the south of Circum was funded on a valuation of US$200 million last year (i.e. equivalent to Circum at $2 per Circum share). And, I believe that Circum should warrant a significantly higher valuation on its much bigger project particularly as and when the mining license is granted."

Forward Looking Statements:

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi ed by Circum's use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

 
                     Premier African Minerals     Tel: [phone] 
 Fuad Sillem          Limited                      922074 
------------------  ---------------------------  ------------------ 
 Michael Cornish     Beaumont Cornish             Tel: +44 (0) 207 
  / Roland Cornish    Limited                      628 3396 
                      (Nominated Adviser) 
------------------  ---------------------------  ------------------ 
 Jerry Keen/Edward   Shore Capital Stockbrokers   Tel: +44 (0) 207 
  Mansfield           Limited                      408 4090 
------------------  ---------------------------  ------------------ 
                     Beaufort Securities          Tel: +44 (0) 20 
 Jon Belliss          Limited                      7382 8300 
------------------  ---------------------------  ------------------ 
 Charles Goodwin/    Yellow Jersey PR             Tel: [phone] 
  Harriet Jackson     Limited                      788221 
------------------  ---------------------------  ------------------ 
 

Notes to Editor:

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused in Southern and Western Africa with production started at its flagship RHA project in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, gold, lithium and tantalum in Zimbabwe and Benin, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company recently acquired a 52% controlling stake in Mozambique-based TCT Industrias Florestais Limitada, which owns a substantial limestone deposit and forestry business located on rail in the Sofala Province of Mozambique. In addition, The Company holds 2 million shares in Circum Minerals Limited ("Circum"), the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset. At present those shares are valued at US$4 million based on the latest price at which Circum has accepted subscriptions. Premier also has a 4.5% interest in Casa Mining Limited, a privately-owned exploration company that has a 71.25% interest in the 1.2 million ounce inferred resource Akyanga gold deposit in the DRC.

Glossary

   KCI:   Potassium Chloride 

MOP: Muriate of Potash

SOP: Sulphate of Potash

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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February 10, 2017 06:09 ET (11:09 GMT)